debentures bearer bonds 10If the market interest rate is gre

debentures. bearer bonds. 10.If the market interest rate is greater than the contractual interest rate, bonds ill sell a. at a premium. b. at face value c. at a discount d only after the stated interest rate is increased

Solution

Answer :c. At a discount.

Explanation: if market rate is higher than contractual interest rate, then an investor wouldn\'t like to invest in bond rather he will invest in market. So, in order to attract him the company has to issue bonds at discount.